Gains Reversed as KOSPI Fails to Surpass 3,900 Mark
Profit-Taking Hits Samsung Electronics and SK Hynix
"Upward Momentum Expected to Continue Until APEC Summit"
On October 21, the KOSPI gave up its earlier gains just shy of the 3,900 mark and closed slightly higher. The KOSDAQ also reversed into negative territory during the session, finishing trading at the 870 level.
On this day, the KOSPI closed at 3,823.84, up 0.24% from the previous trading day. The index continued its upward trend from the previous day in the early session. After opening at 3,851.01, up 0.95% from the previous session, the index surged to an intraday high of 3,893.06, setting a new all-time high during trading. However, in the afternoon, the gains narrowed, and the index closed without surpassing the 3,900 level.
Individual investors and foreign investors sold 155.6 billion won and 12.4 billion won, respectively, leading the intraday decline. This is interpreted as profit-taking amid concerns over the recent rapid rise in the index. Institutional investors made net purchases of 211.6 billion won, preventing a further decline.
Many sectors that had shown strength in the early session also turned lower. Specifically, the largest declines were seen in securities (-3.29%), food & beverages and tobacco (-1.40%), distribution (-1.05%), medical and precision instruments (-0.96%), transportation and storage (-0.70%), electrical and electronics (-0.64%), and non-metallic minerals (-0.58%). Sectors that closed higher included transportation equipment and parts (3.80%), electricity and gas (3.29%), general services (2.75%), construction (1.99%), chemicals (0.69%), IT services (0.65%), pharmaceuticals (0.58%), and entertainment and culture (0.49%).
Among the top market cap stocks, Samsung Electronics (-0.61%) and SK Hynix (-1.34%) both ended lower. The retreat of these two leading semiconductor stocks, which had previously driven the rally, impacted the overall market. Doosan Enerbility also fell by 0.37%. On the other hand, LG Energy Solution (1.04%), Samsung Biologics (0.79%), Hyundai Motor (3.43%), Hanwha Aerospace (2.20%), HD Hyundai Heavy Industries (9.96%), and Kia (1.14%) closed higher.
On the same day, the KOSDAQ closed at 872.50, down 0.37% from the previous session. The index started at 881.53, up 0.66%, and rose to 882.10 before turning downward in the afternoon and failing to avoid a decline.
Foreign investors and institutions sold 99.6 billion won and 59.7 billion won, respectively, leading the index lower. Individual investors made net purchases of 187.2 billion won.
By sector, declines outnumbered gains. The largest drops were seen in non-metallic minerals (-1.99%), finance (-1.74%), machinery and equipment (-1.54%), construction (-1.31%), distribution (-0.80%), electrical and electronics (-0.67%), food & beverages and tobacco (-0.58%), paper and wood (-0.41%), manufacturing (-0.40%), and medical and precision instruments (-0.30%). In contrast, publishing and media reproduction (2.57%), textiles and apparel (2.34%), transportation equipment and parts (2.24%), entertainment and culture (1.03%), metals (0.78%), transportation and storage (0.64%), telecommunications (0.58%), and pharmaceuticals (0.28%) rose.
Among top market cap stocks, Alteogen (0.11%), Peptron (0.37%), HLB (11.17%), and Samchundang Pharm (3.10%) advanced, while Ecopro BM (-0.31%), Ecopro (-2.32%), Rainbow Robotics (-3.96%), PharmaResearch (-5.81%), and Legochem Bio (-0.66%) declined.
KB Securities researchers Lim Jeongeun and Tae Yunseon commented, "Expectations for a resolution of the US-China trade conflict and Korea-US tariff negotiations have supported the stock market, leading to strength in shipbuilding, automotive, and nuclear power sectors. Although the market paused today after a series of record highs, positive momentum is expected to continue as optimism remains ahead of the Asia-Pacific Economic Cooperation (APEC) summit."
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